From the New York Times (link)

Airbus is in the late stages of negotiations to build an assembly line for its A320 passenger plane in China, a landmark deal that would significantly lift its prospects for business there.

Producing European planes in China would open a new front in the battle between Airbus and Boeing for the world’s next great aviation market, as well as underscore the growing role of state enterprises in the global economy.

Four Chinese cities are vying for the plant, which would produce up to four A320’s a month, in cooperation with Chinese state-owned aerospace manufacturers, industry experts said. The A320 is a short-haul jet that serves primarily domestic routes, which are booming across China.

On the short list for the project, these experts said, are Tianjin, a port near Beijing; Xian, an aircraft-manufacturing center in north-central China; Shanghai, the site of a McDonnell Douglas assembly plant that has closed; and Zhuhai, a port near Hong Kong.